Gold up 0.5%; platinum ends at three-month high

Market awaits Fed hints on policy; platinum nears parity with gold

SarahTurner

SAN FRANCISCO (MarketWatch) — Gold futures settled higher Monday, as the market looked to this week’s speeches by Federal Reserve officials for hints on their next move regarding U.S. monetary policy.

Climbing platinum futures, meanwhile, moved near price parity with gold on supply concerns ahead of financial results and a review of operations from Anglo American Platinum Ltd.
AMS, +1.28%AGPPY, +4.55%
The world’s largest producer was beset by strikes last year at its South African mines.

Gold for February delivery
US:GCG3
advanced $8.80, or 0.5%, to settle at $1,669.40 an ounce on the Comex division of the New York Mercantile Exchange.

Southeast Asia’s a worry in 2013

(6:46)

Global markets have started the year on a bullish note, but that may not continue for the rest of 2013.

Silver for March delivery
US:SIH3
also advanced, rallying 70 cents, or 2.3%, to $31.11 an ounce.

“There have been more hawkish noises coming from certain Federal Open Market Committee members of late, and any signs that suggest the recovery is on track or that inflation risks are heating up would lend weight to their calls for an earlier end to accommodative policies,” said Ben Traynor, chief economist at BullionVault.

Chicago Fed President Charles Evans, president of the Federal Reserve Bank of Chicago, told a Hong Kong audience overnight that monetary policy needs to help produce the most “robust demand growth” the U.S. can reasonably achieve with appropriate measures for price stability. See: Monetary policy needs to boost growth, says Fed’s Evans.

Fed chief Ben Bernanke will make a speech on economic issues at 4 p.m. Eastern time at the University of Michigan. Other speeches from Fed officials are scheduled throughout the week. See the Washington Calendar.

Getty Images

Gold edges up Monday.

U.S. retail-sales data due Tuesday and consumer-price-inflation data on Wednesday are “worth keeping an eye on” as well, said Traynor.

The same holds for Chinese data due out Friday, including gross domestic product for the fiourth quarter, he said.

”Any slowdown in China would likely have significant ramifications for gold demand given the huge role China plays in the global gold market,” he said.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.